- Increased distributable cash 10% to quarterly record of $39.1 million

"Acquisitions since the third quarter of 2006 increased Arctic Glacier's sales to a new quarterly high," said Keith McMahon, President and CEO of Arctic Glacier Inc., the Fund's operating company. "Since the end of the third quarter of 2006, the Fund completed the major platform acquisition of Union Ice in California and a smaller platform of Tropic Ice in Michigan. During the first nine months of 2007 we completed an additional six acquisitions. The revenues contributed by these new operations resulted in a gain over the same quarter last year."

Mr. McMahon added that Arctic Glacier's program of rationalization and integration measures for acquired operations allowed the company to capture synergies and improve operational efficiencies. These activities included the conversion of a manufacturing plant in Traverse City, Michigan to a distribution center and the closure of distribution centers in Santa Ana, California and Bad Axe and Flint, Michigan during the quarter.

Doug Bailey, Chief Financial Officer of Arctic Glacier, said revenues during the third quarter were limited by two factors: unfavorable weather early in the quarter, plus an unprecedented appreciation of the Canadian dollar. "This led to a marginal decrease in revenues in previously serviced markets, but this was offset by the Fund's acquisitions over the past year and resulted in quarterly record highs for sales, EBITDA, earnings and distributable cash."

Mr. Bailey also noted the improvement in the Fund's financial position, with the net debt to EBITDA ratio falling to 2.1:1 at September 30, 2007 from 2.7:1 at December 30, 2006. "The deleveraging of our balance sheet, combined with the stronger Canadian dollar, puts Arctic Glacier in a very favorable position for further growth in the U.S.," he said.

Third Quarter 2007 Review

Sales in the third quarter totaled $106.6 million, an increase of $2.4 million or 2% from the same period in 2006. Most of the gain was attributable to the platform acquisitions of Union Ice in California, Tropic Ice in Michigan and six additional acquisitions since the end of the third quarter of 2006. Sales in previously serviced markets decreased $1.0 million or 1% compared to the same quarter in 2006, while the stronger Canadian dollar decreased reported sales by $5.5 million for the quarter. For the first nine months of 2007, sales increased by 19% to $212.8 million.

EBITDA during the third quarter was $43.3 million, a 2% increase from the same period last year. Nine-month EBITDA increased 10% to $64.3 million. Driving these gains were increased contributions from previously serviced markets and operations acquired during and since the third quarter of 2006.

Net income for the most recent quarter increased 23% to $23.4 million. Earnings also moved up on a per unit basis, to $0.60 (basic) and $0.54 (diluted) from $0.59 (basic) and $0.52 (diluted) in the same quarter of 2006.

For the first nine months of 2007, earnings gained 2% to $24.2 million. That equated to $0.64 per unit (basic) and $0.63 (diluted), versus $0.79 per unit (basic) and $0.78 (diluted) in the 2006 period. The decrease per unit was primarily due to the acquisitions of most operations of California Ice and all of Happy Ice during late May and early June of 2006 as summer approached, with rising temperatures driving the seasonal ramp up in sales volumes. As a result, the new operations contributed to results only during the busiest portion of the year. By contrast, these operations contributed to results during all of 2007 to date, including the slower first few months of the year. This had the effect of increasing earnings per unit (basic and diluted) for the first nine months of the previous year.

Acquisitions during the past year, partially offset by weather and the stronger Canadian dollar contributed to a 10% increase in distributable cash, to a third quarter high of $39.1 million. On a per-unit basis that equated to $1.01, versus $1.09 in the same quarter of 2006, due to the factors noted above as well as an increase in the number of Fund units outstanding this year following a February 2007 equity offering that funded the Union Ice acquisition, reduced debt that was incurred as part of the California Ice acquisition and provided capital for growth.

During the first nine months of 2007, distributable cash decreased 1% to $44.9 million compared to $45.2 million last year. This equates to $1.18 per unit, compared to $1.50 last year.

The Fund declared distributions to unitholders totaling $10.7 million during the quarter, up 19% from 2006. That equates to $0.28 per unit for the third quarter in both years. The Fund's current monthly distribution rate of $0.0917 per unit amounts to an annualized rate of $1.10.

Financial Position

As at September 30, 2007, Arctic Glacier's total long-term debt, excluding convertible debentures, was $155.1 million, compared to $186.1 million at December 31, 2006. The decrease relates to the reduction of debt from the proceeds of a $70.1 million equity offering in the first quarter and from seasonal cash inflows.

The Fund's net debt to EBITDA ratio at September 30, 2007 was 2.1:1 (after adjusting EBITDA by $0.7 million to reflect the trailing 12-month contribution of acquisitions made during the year). That compares to 2.7:1 at December 31, 2006 (EBITDA adjusted by $8.8 million). The Fund's intention is to maintain an annual average leverage ratio of less than 2.25:1. The first and second quarter ratios are typically higher due to seasonal operating requirements, while the third and fourth quarter ratios are typically lower.

Outlook

Arctic Glacier's growth strategy is achieving its objectives. During the third quarter, sales, EBITDA, distributable cash and other key operating metrics advanced to new quarterly highs. The drivers consisted mainly of acquisitions completed during and since the third quarter of 2006, and their contributions more than offset two unexpected challenges during the quarter. One was unfavorable weather early in the quarter, which slowed sales during Arctic Glacier's busiest season. The other was a rapid and unprecedented appreciation of the Canadian dollar, which reduced Canadian-dollar amounts generated in U.S. markets.

Integral to the acquisition process is the rationalization and integration of acquired operations. During the third quarter these initiatives enabled management to close distribution centers in three principal markets. As these initiatives are completed and brought onstream, the Fund benefits from the productivity enhancements, operational synergies and cost reductions they provide. This process generally requires 24 months or more for acquired operations to achieve optimum efficiency.

The appreciation of the Canadian dollar, while reducing reported amounts converted from U.S. currency, also benefits the Fund by bolstering its growth strategy. This enhances Arctic Glacier's financial ability to make acquisitions in the U.S. with funds raised in Canada. As a result, Arctic Glacier's well-established growth strategy is more viable than ever before, particularly when combined with the Fund's strong balance sheet.

Subsequent to the third quarter, Arctic Glacier acquired Kar Ice. The company, based in Barstow, California, further adds to the Fund's key operating metrics and broadens market coverage of the important western U.S. market. In addition to being the largest provider of packaged ice in California, Arctic Glacier is the market leader in the populous northeastern states, Michigan including the greater Detroit area, the central states and all of Canada. The Fund's expansion initiatives over the past year have consolidated Arctic Glacier's position as the second-largest packaged ice company in North America and provided platforms for further growth.

Going forward, the Fund's strong, reliable and growing cash flow from operations is expected to generate distributable cash exceeding monthly requirements for distributions to unitholders for 2007 at the current annualized rate of $1.10 per unit. In 2007 the Fund will benefit from a full year of operations of California Ice and Happy Ice, plus 10 months of Union Ice. As it does so, the Fund will continue to examine acquisition opportunities to further enhance unitholder value.

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 37 manufacturing plants and 53 distribution facilities across Canada and the northeast, central and western United States servicing more than 70,000 retail accounts.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 38.9 million trust units outstanding.

Conference Call and Webcast

Arctic Glacier will discuss third quarter 2007 results during a conference call with a live audio webcast for investors and analysts on Monday, November 12 at 11 a.m. (EST). To access the simultaneous webcast, log on to Arctic Glacier's website at www.arcticglacierinc.com. Please note the webcast allows participants to listen only.

Forward-Looking Statements

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

Non-GAAP measures

EBITDA and distributable cash are not recognized measures under Canadian generally accepted accounting principles (GAAP). EBITDA is defined as earnings before interest, taxes, amortization, acquisition integration charges and other non-recurring expenses. EBITDA is a performance measure used by management to provide an indication of cash available for distribution from ongoing operations prior to debt service, capital expenditures and income taxes and is often used to compare companies and income trusts on the basis of ability to generate cash from ongoing operations. Distributable cash is a performance measure used by management to summarize the funds available for distribution to unitholders in an income trust. Investors should be cautioned that EBITDA and distributable cash should not be construed as alternatives to earnings, cash from operating activities or other financial measures determined in accordance with GAAP as indicators of the Fund's performance. The Fund's method of calculating EBITDA and distributable cash may differ from other companies and income trusts and, accordingly, may not be comparable to measures used by them.

ARCTIC GLACIER INCOME FUNDInterim Consolidated Balance SheetsAs at September 30, 2007 and 2006 (unaudited) and December 31, 2006